FIEM Industries to enter capital market on Sep 21
New Delhi, Sep 14 (UNI) Automotive lighting major FIEM Industries will raise Rs 60 crore through an IPO to garner funds for setting up new manufacturing facilities and expanding the existing ones.
The Haryana-based FIEM will set up a 100 per cent export oriented unit (EOU) in Hosur, Tamil Nadu, and another unit at Nalagarh in Himachal Pradesh, which will enjoy various tax benefits.
''Out of the total capital raised from the IPO, FIEM will invest Rs 22.8 crore in the Nalagarh unit, while Rs 6.7 crore will be invested in the EOU in the Hosur plant,'' FIEM Industries CMD J K Jain told reporters here today.
The company presently has four units in Haryana, Tamil Nadu and Karnataka and is looking at the tractor segment as well as the northern markets from the Nalagarh unit which will be operational by December this year.
The company will also expand its existing facility at Hosur, Tamil Nadu with Rs 8.5 crore and its Kundli plant at Himachal Pradesh with Rs 2.5 crore.
The Hosur plant output will be used to export auto mirror plates initially and later on, the complete mirror assys to Ichikoh, along with automotive lighting and signalling equipment to Piaggio, Aspock and TVS.
FIEM, which has a technical-support agreement with Japanese major Ichikoh Industries, will enter the capital market on September 21 with a public issue of 41,00,000 equity shares of Rs 10 each at a price band of Rs 125-145.
The company's IPO, through the book-building route, comprises of a reservation for eligible employees of 400,000 equity shares of Rs 10 each and a net issue to the public of 3,700,000 equity shares.
The issue will constitute 34.58 per cent of the total post issue paid-up equity capital of the company and will close on September 27. The promoter's holding post-issue will come down to 63.96 per cent.
ILFS Investsmart is the lead manager to the issue while Intime Spectrum Registry is the Registrar.
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